1.1(2) Southeast Asia

Overview

Australia’s engagement with Southeast Asia is critical to Australia’s security and prosperity. The members of ASEAN have a combined population of more than 600 million and economies of $2.4trillion. The department focused on strengthening ties with ASEAN member states, including through events to commemorate the 40th anniversary of the Australia–ASEAN partnership in 2014.

We worked with ASEAN member states in the East Asia Summit (EAS) to foster regional prosperity and stability. We contributed to strategic discussion on maritime security and the Korean Peninsula and participated in practical initiatives on health, education, disaster management, regional connectivity and water resources. EAS leaders welcomed the establishment of the Asia Pacific Leaders Malaria Alliance—initiated by the Prime Ministers of Australia and Vietnam.

The department managed another busy year of high-level exchanges to and from the region, helping to strengthen key relationships. The Prime Minister and portfolio ministers made multiple visits to Indonesia and Mr Abbott attended the 8th EAS in Brunei Darussalam. Ministers also visited Singapore, the Philippines, Malaysia, Vietnam and Cambodia.

In 2014, the first Australian students travelled to Indonesia and Singapore under the New Colombo Plan (NCP). Foreign Minister Bishop announced the inaugural awardees under the Australia–Malaysia ‘Towards 2020’ Scholarships Program in February 2014. Engagement with Burma expanded and we celebrated the 40th anniversary of relations with Vietnam.

The department worked to boost trade, investment and economic growth in the region. Two-way trade between Australia and ASEAN countries amounted to 14.3 per cent of Australia’s total trade in 2013. Portfolio ministers visited the Philippines with representatives from 20 Australian companies. We supported the Indonesia–Australia Partnership for Food Security in the Red Meat and Cattle Sector which held its first meeting in April 2014.

The department also promoted economic reform and growth in Southeast Asia through our aid program. Parliamentary Secretary Mason attended the ground breaking ceremony for the Cao Lanh Bridge, which will benefit five million Vietnamese by increasing access to markets, services and private sector activity, and helping reduce poverty and lift living standards. (See also 1.7.)

The department played a key role in efforts to empower women across the region, funding specific projects to address discrimination and violence, and economic participation.

Indonesia

Despite recent bilateral difficulties, the department helped sustain a comprehensive relationship with Indonesia which spans more than 20 Australian Government agencies across a wide range of common interests. The department supported three prime ministerial visits—including Prime Minister Abbott’s visit to Batam Island in June 2014 to strengthen the bilateral partnership. We managed the Foreign Minister’s four visits as well as meetings with her Indonesian counterpart at multilateral forums. We facilitated the Minister for Trade and Investment’s two visits to enhance bilateral trade and investment links and advocate for greater liberalisation of Indonesia’s trade and investment regulations. In November 2013, Indonesia’s Vice President visited Australia to strengthen government, business and education ties.

We kept portfolio ministers well informed of the progress of Indonesia’s 2014 parliamentary and presidential elections. The department promoted deeper people-to-people links through implementation of the NCP and support for the establishment of the Australia–Indonesia Centre, based at Monash University. Australia and Indonesia co-hosted Rapid Disaster Response Workshops for EAS members in September 2013 and June 2014. We also supported Mr Robb’s co-chairing, with his Indonesian counterpart, of the Cairns Group Ministerial Meeting in December 2013.

Minister for Foreign Affairs, Julie Bishop, with Indonesia’s Minister for Foreign Affairs, Dr Marty Natalegawa, during her first official visit to Indonesia, 30 September 2013

Minister for Foreign Affairs, Julie Bishop, with Indonesia’s Minister for Foreign Affairs, Dr Marty Natalegawa, during her first official visit to Indonesia, 30 September 2013. [DFAT]

The department encouraged two-way trade and investment links. The Prime Minister was accompanied on his visit to Jakarta in September 2013 by a senior business delegation, and we progressed negotiations on the Indonesia–Australia Comprehensive Economic Partnership Agreement (IA-CEPA) (see also 1.1(8)). Activities in the agriculture sector to boost economic cooperation and skills exchange with Indonesia complemented IA-CEPA negotiations. We supported industry efforts to maximise the opportunity created by the removal of Indonesian quotas on beef and cattle imports. We funded the establishment of the Indonesia–Australia Partnership for Food Security in the Red Meat and Cattle Sector, involving private sectors of both countries, and participated in its first meeting in April 2014.

Development assistance was an important part of the bilateral relationship. The department managed an estimated $560.6 million in aid for Indonesia. The program focused on sharing Australia’s skills and knowledge to help Indonesia increase growth and reduce poverty. We promoted economic growth through assistance with regulatory and policy reform and infrastructure development. We invested in universal education and worked with Indonesia to improve the health of its population. We also promoted enhanced access to economic opportunity and full community participation for women, free of discrimination and violence. (See 1.7.)

Table 2: Australia’s trade in goods and services with Southeast Asia (a)
 ExportsExports ImportsImports 
Goods and services20122013Trend growth 2008–201320122013Trend growth 2008–2013
 $m$m%$m$m%
Total Southeast Asia (b) (d) (g) 34,160 33,976 3.6 57,393 58,614 1.6
Singapore (b) (d) 10,358 9,208 1.1 18,784 17,876 0.5
Malaysia (c) (d) 6,718 7,225 7.7 10,916 10,944 3.3
Indonesia (c) (d) 6,004 6,364 4.7 8,576 8,522 7.6
Thailand (c) (d) 5,724 5,713 –0.1 12,679 13,832 0.4
Vietnam (b) (d) 2,699 3,132 8.3 3,921 4,674 –3.0
Philippines (b) (d) 2,283 1,903 5.1 1,110 1,467 6.6
Other ASEAN (b) (d) (e) 348 410 7.2 1,405 1,297 1.6
Total ASEAN (b) (d) (g) 34,134 33,954 3.6 57,391 58,612 1.6
Timor-Leste (b) (d) (f) 26 22 –12.2 2 2 –27.5

(a) Goods data on a recorded trade basis, services data on a balance of payments basis.

(b) Excludes selected confidential export commodities from partner country totals from June 2013 onwards. Therefore movements in the confidentialised country totals may not reflect the true pattern of trade.

(c) Actual export total for 2013 based on unpublished ABS data.

(d) Excludes selected confidential import commodities from partner country totals from September 2008 onwards. Therefore movements in the confidentialised country totals may not reflect the true pattern of trade.

(e) Other ASEAN comprises Brunei, Burma, Cambodia and Laos.

(f) Goods data only. Services data is not published by the ABS for these countries.

(g) Total includes actual export totals for 2013 for Indonesia, Malaysia and Thailand.

Based on DFAT STARS database, ABS catalogue 5368.0.55.004 and unpublished ABS data.

Thailand

The department coordinated Australia’s whole-of-government response to the political turmoil leading up to and during the military coup of May 2014. We encouraged the coup leaders to set a pathway for a return to democracy as soon as possible.

Effective implementation of the Thailand–Australia Free Trade Agreement (TAFTA) remained a key focus. We improved processes for certificates of origin in the TAFTA Market Access Implementing Committee and developed a strategy for boosting agricultural trade. Our ambassador highlighted education opportunities during a roadshow to over 20 Australian educational institutions in April and May 2014.

We supported visits to Thailand by the Parliamentary Secretary to the Prime Minister and former High Court Justice Michael Kirby to promote people-to-people links and the rule of law. The department facilitated a number of Thai officials’ visits to Australia and hosted Thailand’s Deputy Permanent Secretary of Justice’s visit with a focus on multiculturalism, community and restorative justice and conflict resolution.

Staff Profile

Sarah Roberts

Counsellor (Political–Economic), Bangkok

Sarah Roberts, Counsellor (Political–Economic), Bangkok

As Political–Economic Counsellor at the Australian Embassy in Bangkok, I have spent much of the past year analysing the complex and fast-moving political scene in Thailand, especially events surrounding the May coup.

The embassy team and I met political actors from all sides to hear their points of view. We developed recommendations about what developments meant for Australian interests in Thailand, especially for business and the travelling public, and how the Australian Government might shape its response to the coup.

I joined the department in1996 as a graduate trainee, after working as a judges’ associate and at Expo ’92 in Seville. I have served overseas in Brasilia, Bougainville and Suva. In Canberra, I was Deputy Director of the CHOGM policy taskforce, which prepared for the 4000-delegate meeting in 2011 in Perth; worked on the department’s recruitment and corporate planning; and was part of the consular crisis cadre. I speak Thai, Spanish and Portuguese.

It is a privilege to work in an organisation that offers such variety in the pursuit of issues of importance to Australia. I love that my job is all about people: pursuing Australian interests in different cultural contexts; analysing local events with overseas contacts; helping Australians in consular crises; and working with talented Australian and local colleagues.

Show content

Malaysia

The Foreign Minister visited Kuala Lumpur in February 2014 to advance Australia’s economic diplomacy objectives, including through the announcement of Malaysia’s first awardees under the Australia–Malaysia ‘Towards 2020’ scholarships managed by the department. We progressed cooperation on transnational crime through the development of an MOU and reciprocal visits by ministers responsible for immigration and home affairs issues.

We collaborated closely in the search for missing Malaysian Airlines flight MH370 and the department facilitated visits to Australia by the Malaysian Prime Minister and Foreign and Defence Ministers. Senior officials’ talks held in Kuala Lumpur in June 2014 shared views on the regional strategic outlook.

The department supported a number of parliamentary delegation exchanges in both directions, as well as several high-level Malaysian visits, including one through the Special Visits Program.

Singapore

Ms Bishop’s visit in October 2013 was one of her first as Foreign Minister, in recognition of Singapore’s importance as a strategic and economic partner in the region. Frequent high-level visits continued throughout the year, including by Mr Robb, Senator Mason and the Defence Minister. The President of Singapore made a state visit to Australia in June 2014, affirming our joint commitment to deepening cooperation ahead of the 50th anniversary of diplomatic relations in 2015.

The department strengthened economic ties, including through a roadshow in Australia led by the High Commissioner to Singapore to assist Australian businesses take advantage of Singapore’s position as a major trading and wealth management hub. We supported cooperation with Singapore on regional objectives, and co-hosted an ASEAN Connectivity Workshop in May 2014. Australia invited Singapore to participate as a guest in the G20 under Australia’s presidency. Some of Australia’s first scholars under the NCP studied in Singapore in 2014.

The Philippines

The department delivered continued high-level engagement with the Philippines. The Foreign Minister visited the Philippines in the aftermath of Typhoon Haiyan and Australia provided $38.8 million to support the immediate response and initial recovery effort.

Accompanied by representatives from 20 Australian companies, Ms Bishop and Mr Robb met with their counterparts at the Fourth Philippines–Australia Ministers’ Meeting (PAMM) in Manila in February 2014. Ministers agreed to increase economic ties and share Australia’s mining sector experience. We advocated for fair and transparent consideration of Australian business interests.

Minister for Trade and Investment, Andrew Robb AO (right), with Secretary, Philippine Department of Trade and Industry, Greg Domingo, Business Sector Dialogue, PAMM, Manila, February 2013

Minister for Trade and Investment, Andrew Robb AO (right), with Secretary, Philippine Department of Trade and Industry, Greg Domingo, Business Sector Dialogue, PAMM, Manila, February 2013. [DFAT]

The department delivered an aid program of $171.4 million, focused on basic education, governance, sustainable economic growth, disaster risk reduction and humanitarian emergency response efforts, including Typhoon Haiyan. We also supported the Mindanao peace process, which led to the March 2014 agreement between the Philippines Government and the Moro Islamic Liberation Front, and announced a new $6 million program to advance the process. (See 1.7.)

Vietnam

We conducted programs in Vietnam to mark the 40th anniversary of the establishment of diplomatic relations in 2013. The department promoted the increasingly strategic nature of the partnership through support for the second Australia–Vietnam Strategic Dialogue in November 2013 and the Foreign Minister’s visit in February 2014.

We facilitated the Vietnamese Minister of Justice’s April 2014 visit and those by officials from the Economic Commission of the Communist Party and the Office of the Government.

The department delivered aid of $121.9 million to help reduce poverty by promoting economic growth and integration, developing infrastructure and human resources, empowering women and overcoming environmental challenges. The Australian/Asian Development Bank-funded Cao Lanh Bridge is Australia’s largest aid project on mainland Southeast Asia. (See also 1.7.)

Burma

The department continued to play a central role in the Government’s expanding engagement with Burma. We managed several high-level visits, including the visit to Australia by the Leader of the National League for Democracy, Aung San Suu Kyi in late 2013.

The department supported the establishment of the new Austrade office in Rangoon, and the appointment of a resident defence attaché in January 2014.

Acknowledging the rapid political and economic transition in Burma, we targeted development assistance to support the reform process. The department’s $85.5 million aid program provided essential education, health and humanitarian assistance and promoted stable long-term growth through governance and peace programs. (See 1.7.)

The department continued to raise human rights concerns, notably on Rakhine State, directly with Burma and in international forums.

Timor-Leste

The department facilitated the visit to Australia by Timor-Leste’s President and Foreign Minister in July 2013. We also supported a trilateral meeting of Australian, Timorese and Indonesian foreign ministers in September 2013, and commenced a study identifying opportunities to increase economic links across the three countries.

The department supported security sector cooperation, including by assisting with the Annual Defence Cooperation Talks in Dili and the Australian Federal Police’s Timor-Leste Police Development Program.

Australia was the largest bilateral aid donor to Timor-Leste. The department was responsible for managing $79.4 million in aid in 2013–14. The program focused on basic services and economic opportunities, including for women, through support to health, education, agriculture, infrastructure and governance. In April, Australia launched a new program aimed at ending violence against women; and in June, signed a direct budget support agreement with the Timorese Ministry of Finance to strengthen public financial management. (See 1.71.13.)

Cambodia

The department supported the Foreign Minister’s visit to Cambodia in February, where she met the Prime Minister and other senior leaders, and engaged with Australian business, civil society organisations and the opposition Cambodia National Rescue Party. Australia maintained its contribution to the Extraordinary Chambers in the Courts of Cambodia to bring to justice perpetrators of atrocities during the Khmer Rouge period.

Staff Profile

Savon Keo

Senior Operations Manager, Phnom Penh

Marco Salvio

I have been employed at the Australian Embassy in Phnom Penh since 2006. I started as the Senior Office Manager. With the reduction of an A-based officer, I was promoted to the Senior Operations Manager. This position provided me with increased responsibilities where I now manage more staff, projects and programs covering property, security, human resources and protocol. I liaise with the Cambodian Ministry of Foreign Affairs and International Cooperation and other ministries on logistical arrangements for Australian ministerial and other official visits to Cambodia.

As with my Cambodian LES colleagues I feel greatly honoured and proud to work for the department under the umbrella of the Australian embassy. The embassy is considered a highly professional workplace which offers a high standard and ethical working environment. I consider myself fortunate to work with a very good team of both A-based and LES members.

Over the past eight years, I have been heavily involved with three challenging and successful periods: construction and relocation of the new chancery (2008–2009); ASEAN summits (2011–2012); and representing the DFAT LES on the post consultative group to negotiate a new terms and conditions handbook as part of the conditions of service alignment (2013–2014).

Show content

The department’s $74.1 million aid program promoted economic growth through support for agriculture and rural development, health care, infrastructure and effective governance. Through our development assistance and negotiations on the Regional Comprehensive Economic Partnership we supported institutional reform, jobs growth and gender equality in Cambodia. (See 1.7.)

East Asia Summit, ASEAN and regional engagement

Australia worked with ASEAN member states to pursue a stable strategic environment in Southeast Asia, as well as to shape the EAS’s political and security agenda and entrench the summit as a key institution for managing regional challenges. At the 8th EAS, leaders discussed important regional security issues, such as disputes in the South China Sea and tensions on the Korean Peninsula, welcomed Australia’s NCP and acknowledged Australia’s work to improve cooperation in disaster management, education and connectivity. EAS leaders applauded Australia and Vietnam’s leadership on the Asia Pacific Leaders Malaria Alliance, a new regional initiative to tackle drug-resistant strains.

The department co-chaired, with the Philippines, the ASEAN–Australia Joint Cooperation Committee meeting in November 2013 and the ASEAN–Australia Forum in March 2014. The forum underscored our mutual interest in the maintenance of regional peace and stability, and called on all parties concerned to resolve territorial claims in the South China Sea in accordance with international law. We supported the Australian Strategic Policy Institute’s conference on Maritime Confidence Building Measures in the South China Sea in August 2013 and the presentation of its outcomes at the Expanded ASEAN Maritime Forum in Kuala Lumpur in October. We also co-chaired, with the Philippines, the Second ASEAN Regional Forum Seminar on the UN Convention on the Law of the Sea in May 2014. We continued to provide support to Burma’s ASEAN and EAS chairmanship.

Ambassador for Women and Girls Natasha Stott Despoja attended the ASEAN Commission’s Civil Society Dialogue on the Promotion and Protection of the Rights of Women and Children in Jakarta in February 2014 (see also 1.1(10)).

The aid program targeted trans-boundary challenges such as water management, public health threats and human trafficking. Totalling $75.7 million in 2013–14, the regional program also promoted prosperity by supporting ASEAN’s efforts to deepen economic integration and increase regional trade. (See 1.7.)

Figure 10: Australia’s trade in goods and services with ASEAN (a) (b)

Bar chart of Australia’s trade in goods and services with ASEAN (a)(b): Exports, in 2008 A$31,185m, in 2009 A$27,604m, in 2010 A$29,571m, in 2011 A$35,299m, in 2012 A$34,134m, in 2013 A$33,954m. Imports, in 2008 A$58,301m, in 2009 A$48,809m, in 2010 A$50,564m, in 2011 A$52,973m, in 2012 A$57,391m, in 2013 A$58,612m. Balance, in 2008 A$-27,116m, in 2009 A$-21,205m, in 2010 A$-20,993m, in 2011 A$-17,674m, in 2012 A$-23,257m, in 2013 A$-24,658m. (a) Goods data on a recorded trade basis, services data on a balance of payments basis. (b) Excludes selected confidential import commodities from September 2008 onwards. Based on DFAT STARS database, ABS catalogue 5368.0.55.004 and unpublished ABS data.

(a) Goods data on a recorded trade basis, services data on a balance of payments basis.

(b) Includes actual export totals for Indonesia, Malaysia and Thailand. Excludes selected confidential export commodities from other partner country totals from June 2013 onwards and selected import commodities from September 2008 onwards.

Based on DFAT STARS database and ABS catalogue 5368.0.55.004.

Deputy Secretary and ASEAN Senior Officials’ Meeting leader, Gillian Bird PSM (sixth right), with ASEAN senior officials to celebrate 40th anniversary of the Australia–ASEAN partnership, Canberra, 26 March 2014

Deputy Secretary and ASEAN Senior Officials’ Meeting leader, Gillian Bird PSM (sixth right), with ASEAN senior officials to celebrate 40th anniversary of the Australia–ASEAN partnership, Canberra, 26 March 2014. [DFAT]

Australia–ASEAN 40th anniversary

Australia–ASEAN 40th anniversary Logo

Australia was one of the first countries to recognise ASEAN’s importance when it became the organisation’s inaugural dialogue partner in 1974. We appointed Australia’s first resident Ambassador to ASEAN in September 2013. Ms Bishop, her Philippine counterpart and the ASEAN Secretary-General, launched the 40th anniversary celebrations in February 2014 in Manila.

The first six months of 2014 saw implementation of a series of anniversary initiatives designed to deepen ties with ASEAN member states. We hosted separate visits to Australia by the ASEAN Secretary-General Le Luong Minh and members of the ASEAN Committee of Permanent Representatives. We co-hosted with Singapore a workshop to support development of ASEAN’s infrastructure connectivity. We worked toward a new Plan of Action to implement the Joint Declaration on the ASEAN–Australia Comprehensive Partnership. The 40th anniversary will culminate in a leaders’ summit in Nay Pyi Taw in November 2014.

Outlook

The department will consolidate our partnerships with ASEAN member states, including though an ASEAN–Australia leaders’ summit in November 2014. We will continue to work to enhance the role of the EAS and will facilitate increased trade and transportation links between Mekong countries, in support of their full integration in the ASEAN Economic Community. We will help countries of the region address trans-boundary issues such as public health threats, human trafficking and the management of shared water resources.

The department will manage visits by portfolio ministers to Southeast Asian nations to strengthen bilateral relationships and promote regional stability and prosperity. We will extend high-level engagement with Indonesia’s new administration and progress closer economic cooperation as agreed at the Philippines–Australia Ministerial Meeting. We will support the Singapore–Australia Joint Ministerial Committee meeting and the Australia–Malaysia Joint Trade Committee meeting.

We will support the 11th Human Rights Dialogue with Vietnam in July, and the third Australia–Vietnam Strategic Dialogue in September. Australia will provide an additional $3.25 million towards the work of the Extraordinary Chambers in the Courts of Cambodia.

We will reshape our aid program consistent with the Government’s development policy to increase our focus on reducing poverty and lifting living standards through sustained economic growth, aid for trade, and private sector engagement, and to promote innovation.